The Economy Overview and Scrutiny Panel met on Monday 6 July 2026 to discuss digital connectivity, performance, and budget monitoring. Key decisions included noting the significant progress in broadband rollout across Worcestershire, with gigabit-capable coverage reaching 88.1%, and acknowledging ongoing challenges with mobile connectivity. The panel also reviewed the council's financial position, noting a breakeven for the 2025/26 financial year after utilising £15.5 million in reserves, primarily due to increased costs in adult and children's social care.

Digital Connectivity Update

The panel received an update on the progress of digital connectivity initiatives across Worcestershire. Councillor Adam Kent, Deputy Leader and Cabinet Member with Responsibility for Finance, Corporate Services and Business, highlighted the significant success of the broadband rollout, stating that gigabit-capable coverage had increased from 42.5% in December 2021 to 88.1% by May 2026, a turnaround described as one of the fastest in the country. This success was attributed to the council's early decision to prioritise rural areas. A £41 million grant from the government is expected to further increase this coverage to approximately 96%.

However, significant challenges remain with mobile connectivity. Councillor Kent shared personal experiences of poor mobile signal, illustrating the critical impact on residents and businesses. He stated that mobile network operators (MNOs) had lied to the public regarding the effectiveness of 4G and 5G, as real-world experiences often fall short of advertised coverage. The council has been collecting data through mobile signal measurement devices deployed on bin lorries, which has revealed discrepancies with data provided by Ofcom and the MNOs.

Robert Stepniewski, Digital Infrastructure and Connectivity Manager, elaborated on the broadband progress, confirming that contracts one, two, and three have either concluded or are nearing completion, with financial monitoring indicating a return of investment to the council. He detailed the BDUK Project Gigabit contract, which aims to bring gigabit-capable broadband to an additional 7% of Worcestershire premises, addressing market failure areas.

Regarding mobile connectivity, Stepniewski acknowledged the challenges across Worcestershire and the UK. He explained that the council's data, collected via Streetwave devices, often contradicts the MNOs' claims. The council is actively working with MNOs and neutral host providers, such as Atlas Tower Group, to identify and address not-spot areas. However, progress is hampered by a lack of transparency from operators regarding their improvement plans and difficulties in securing planning permission for new mast infrastructure, as exemplified by the refused mast application in Welland.

Councillor Nik Price raised the potential of emerging technologies like Starlink and low-Earth orbit satellites as a stopgap or permanent solution for rural areas. Stepniewski confirmed that Starlink is being explored and used for events, noting its ease of use and decreasing costs, and that Amazon Web Services is also expected to enter the market as a competitor.

Councillor Louis Stephen questioned the ultimate responsibility for mobile signal coverage, asking whether it lay with Ofcom or the county council. Councillor Kent explained that Ofcom is the regulator, but they rely on data provided by the operators, which has proven unreliable. He suggested that the situation is largely self-policing and called for MPs to hold operators to account. Stepniewski added that mobile signal is not deemed a market failure, making it difficult for the council to directly intervene, but they are exploring options such as working with neutral host providers.

Councillor Sam Ammar inquired about the merger of Vodafone and Three, the impact of 3G mast decommissioning, and the health concerns surrounding masts. Stepniewski confirmed the Vodafone and Three merger was completed in 2025, with a significant investment planned by April 2028. He stated that the council refers to national guidance for health concerns and that community support for mast installations is often high, despite planning refusals.

Councillor Dave Edmonds sought clarification on the ring-fencing of funds for the council's connectivity team. Councillor Kent indicated that while the broadband rollout is progressing well, the funding for the mobile connectivity team is under review as part of broader budget considerations, and a definitive answer could not be provided at this time.

Performance and 2025/26 Draft Year-End Budget Monitoring

The panel received an update on the council's financial performance and budget monitoring for the 2025/26 financial year. Sarah McDonald, Senior Financial Business Partner, presented a draft outturn position showing a breakeven for the year, achieved through the use of £15.5 million in reserves. This was necessary to cover a £49.1 million gap, largely driven by overspends in adult and children's social care, which are experiencing rising costs and increased demand.

Despite significant overspends in social care, there were underspends in other areas, including a £5.7 million underspend in the Economy and Infrastructure (E&I) service area. This underspend was attributed to savings in waste management, street lighting (due to the completion of the LED rollout), and passenger transport. However, Highways Operations experienced an overspend due to legal cases related to flooding and increased verge maintenance costs.

Home-to-School Transport also showed a significant underspend of £7.1 million, attributed to route reorganisation and re-tendering, despite an increase in the number of children with Education, Health and Care Plans (EHCPs).

The report highlighted a cumulative overspend of £180.8 million in the High Needs Block for special educational needs and disabilities (SEND), with a statutory override allowing this deficit to be held off the balance sheet until March 2028. A High Needs Stability Grant is anticipated to cover 90% of the deficit accrued up to March 2026, pending the approval of the Local SEND reform plan.

Regarding reserves, the forecast shows a decrease from £93.7 million at the start of the year to £75.8 million at the year-end, with only £18.6 million considered unearmarked and usable as risk reserves. The number of schools in deficit has increased from 30 to 38.

Dave Corbett, Performance Analyst, presented performance data, noting that some indicators, such as business survival rates, are only updated annually. He confirmed that Worcestershire's gigabit-capable broadband coverage stood at 87.92% at the end of the financial year, below the UK average of 90.42%. The claimant count for 18-24 year olds in Worcestershire showed a 10% increase compared to the previous year, which is slightly higher than the national and regional averages.

Councillor Amar expressed concern about the higher claimant count in Worcestershire compared to the national average, given the perception of the county as affluent. He questioned the relationship between the Local Enterprise Partnership (LEP) and district councils in addressing business closures and attracting new organisations to vacant commercial spaces. Luke Willetts, Strategic Programme Manager, explained that the LEP works with district councils through the Growth Hub and offers support for town centre partnerships. He acknowledged the challenging commercial property market and stated that the LEP's role is to connect businesses with available spaces and commercial agents, rather than acting as property agents themselves.

Work Programme

The panel reviewed its work programme for the upcoming year. It was agreed that the annual update from the Worcestershire Local Enterprise Partnership (LEP), scheduled for September, would incorporate the issue of the council's role in encouraging the development of commercial space and supporting specific growth sectors. The panel also noted that the dates for the next two meetings would be rescheduled.

The meeting concluded with thanks to the officers and councillors for their contributions.